(a) At the end of each calendar year, the Consultant shall determine the rate of investment return earned on retirement system assets during the calendar year based upon if the retirement system is a minimum of 90% funded, as determined by the actuary following sections shall be applicable.
(b) At the end of each calendar year, the retirement system’s Actuary shall determine the present value of pensions to be paid after the end of the calendar year to eligible retirants and retirement allowance beneficiaries in receipt of pensions at the end of the calendar year. The assumed interest rate used in the determination shall be 8% per year compounded annually.
(c) The distribution of income at the end of each calendar year shall be equal to the product of the present value of pensions determined in subsection (b) at the end of the calendar year times the positive excess, if any, of the rate of investment return determined in subsection (a) exceeding 8%. Commencing with the distribution of income for 2004 and continuing for any subsequent year, the amount distributed during any year shall not exceed $3,000,000.00 or the amount of excess earnings determined by the above formula, whichever is less.
(d) After the end of each calendar year, each eligible retirant and pension beneficiary in receipt of a pension at the end of the calendar year shall be credited with distribution units equal to the number of full years between the effective date of retirement and the end of the calendar year multiplied by the number of full years of service credit in force on the effective date of retirement. Distribution units shall not accumulate from one year to the next.
(e) The distribution amount for an eligible retirant or pension beneficiary shall be equal to the product of the distribution income determined in subsection (c) times the individual’s number of distribution units determined in subsection (d) divided by the total number of distribution units for all eligible retirants and pension beneficiaries in receipt of pensions at the end of the calendar year.
(f) The distribution amount for each eligible retirant or pension beneficiary shall be payable in the form of a supplemental payment prior to October 1, commencing with the calendar year 1985. If an eligible retirant dies before receipt of the retirant’s distribution amount, the payment shall be made to the retirant’s pension beneficiary, if any. If a pension beneficiary dies before receipt of the pension beneficiary’s distribution amount, no payment shall be made.
(g) Eligible retirants and beneficiaries are those who meet the following requirements:
(1) Commencing with the distribution of income for 2004 and continuing for any subsequent year, the annual amount of pension paid is less than or equal to the specified base amount of $24,852.00, adjusted annually by the City Council in accordance with the Consumer Price Index. If the retiree elected to avail himself or herself of the option of annuity withdrawal, the amount being paid for the purposes of this subsection (g)(1) shall be considered to be the annual amount which would have been paid if the annuity had not been withdrawn;
(2) The retirant or pension beneficiary in receipt of a pension must have attained 55 years of age;
(3) The retirant must have retired at least one year prior to January 1 of the year in which the thirteenth check payment is made; and
(4) The retirant must not have retired under Sections 202 through 211 of the former City Charter.
(Ord. 3641, passed 4-11-2005; Ord. 3662, passed 7-11-2005; Ord. 3765, passed 4-12-2010)